The Federal Government of Nigeria has exempted all small businesses in the country with an annual profit of less than twenty-five million nairas from the payment of company income tax.
According to the Minister of Finance, Budget and National Planning, Zainab Ahmed, who made this known at the wake of new increase of taxes by 7.5% said that the new bill will ensure that companies earning between N25m and N100m annually will pay 20 percent of their income as tax, while those earning over N100m will continue to pay 30 percent.
She also revealed that with the development small businesses will be able to do more because they are not paying taxes, as well as their productivity. She also said the development will increase job opportunities as more Nigerians will be employed at the end of the day,
The ministers also noted that the finance bill had been forwarded to the president by the National Assembly for assent and a copy of the bill had also been sent across to the Ministries, Departments and Agencies to cross-check the provisions.